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Chart Indicators Introduction:

When you first enter the world of Crypto, it can be confusing and difficult to know what to do. Most people struggle to decide what they should invest in. Usually people wait to invest and end up getting in at the wrong time.

When I first entered the market, I relied completely on Sub-Reddits and google for information. When going into Sub-Reddits, you throw yourself into a narrowed mindset. Everything looks amazing while everyone is happy and talking about their profits. In reality, it looks a little bit like this: They invested in coins before the bull run, saw their profits, but didn’t take profit. For the people who did; You have my respect.

Technical Analysis:

Before I learned how to use indicators on my charts , I was blindly trading tops and bottoms. Sometimes it worked, sometimes it didn’t. Most people will never admit they bought the top, but I did and instead of taking profits from the buys I made in November of 2017, I made the mistake of buying more. Classic Fear of missing out.

What Is A Chart Indicator?

“Technical indicators are mathematical calculations based on the price, volume, or open interest of a security or contract. By analyzing historical data, technical analysts use indicators to predict future price movements”.

What Kinds of indicators are there?

Fibonacci Retracement:

“ In technical analysis, a Fibonacci retracement is created by taking two extreme points (usually a major peak and trough) on a stock chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%. Once these levels are identified, horizontal lines are drawn and used to identify possible support and resistance levels”

Fibonacci Retracement

Clearly you can see that, in a short amount of time, Bitcoin went up to a new high. In most cases what goes up must come down, and in this case its very true.

Bitcoin had to go down for its current all time high to be legitimatized. Currently, as you can see, we are very much still holding the bottom of this channel. While its still early to predict which move we are making next, right now support is still holding.

RSI (Relative Strength Indicator):

“The relative strength index (RSI) is a momentum indicator developed by noted technical analyst Welles Wilder, that compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security. It is primarily used to attempt to identify overbought or oversold conditions in the trading of an asset.”

RSI

When we made our all time high we became over bought. When that happens, the RSI usually has to go back down and touch support.

Right now we are at the bottom of the RSI index, with potential to make some movement up.

MACD (Moving Average Conversion Divergence)

“ Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the “signal line”, is then plotted on top of the MACD, functioning as a trigger for buy and sell signals.”

When you take a look at all these, its hard to say that price manipulation had a huge factor on price. Most people who bought the tops and bottoms of these moves knew what they were doing. I will dive deep into the price manipulation aspect of Bitcoin in the near future!

There are many more Indicators to use to help with price prediction but the ones mentioned are the ones I use.

Thank you for taking the time to read my work!

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